The successful Shapella update for the Ethereum network had a positive impact on the cryptocurrency quotes, but you should not hope for a long rally.
The positive effects on the price of ether (ETH) from a successful Shapella upgrade will only have a medium-term effect. This is the opinion of the researchers of the American crypto exchange Coinbase You said on your site.
It is argued that the rally in ETH quotes is likely to end in April. Such a short period is due to the fact that cryptocurrency quotes are still dependent on the monetary policy of the US Federal Reserve. According to Coinbase analysts, starting from May 2023, the Fed may begin to roll back rate hikes, which will play on investor sentiment. Until then, an increase in ETH quotes is still possible, since since the beginning of the year its dynamics has lagged behind Bitcoin (BTC), Coinbase admits.
By data Bloomberg, most central banks have either ended their rate hike campaign or are in the final stages. The publication allows the last increase in interest rates from the Fed in May 2023. In March 2023, the Fed raised the rate to 4.75-5%, but by the end of 2023, the rate is unlikely to be higher than 5.25%, and at the end of 2024 it will be completely lowered to 4.25%, Bloomberg predicts.
Recall that on the night of April 12-13, the developers of the Ethereum network deployed the Shapella update, which allowed ETH stakers to withdraw cryptocurrency from the Beacon Chain protocol. Prior to the update, users could only deposit cryptocurrency into staking protocols and earn interest on it, but could not withdraw funds.
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